In most customer interactions, a customer may be faced with various barriers, or elements of friction, that may prevent them from proceeding with the interaction, where the particular barriers may vary from interaction to interaction. In the context of a purchase transaction, for example, customers may wonder if they can afford to make the purchase, or whether they need to make the purchase. For instance, a customer looking to purchase a pair of designer jeans may assess whether they can afford the purchase based on their budget or determine whether they have enough space in their wardrobe. Customers may also face mental barriers regarding a transaction, for example, “shopping guilt” or for those customers who are environmentally conscious, questions regarding the sustainability of the product. It is often the case that the mental barriers are subjective in nature, and may be influenced by various externalities. For example, a customer may assess whether they truly have a need for a product, or whether they strongly desire the product. This assessment may involve additional subjective considerations, for example whether the customer owns the same or similar products. By removing these barriers, customers are more likely to engage in the interaction (i.e., proceed with the purchase transaction). For example, if a product is on sale, a customer may be more inclined to make the purchase.
Customers have turned to secondary markets to address some of these barriers, as secondary markets can allow a customer to off-load or sell certain items. By way of example, a customer can sell a coat that he/she owns, which can provide additional funds to the customer as well as free up space in their wardrobe. Increasing a customer's purchasing power may influence whether the customer is able or willing to conduct future transactions, e.g., additional purchases. Similarly, a customer may choose to purchase an item from a secondary market because it is being offered at a significant discount.
However, secondary markets themselves present barriers to access, as it is often time and labor intensive process to participate in the market, which most customers are simply unwilling or unable to commit to. For example, participating in flea markets is a time consuming activity and has no guarantee of success. This is particularly problematic for customers who are only looking to off-load one or two individual items. While electronic secondary markets (e.g., eBay and Amazon) allow for more sporadic access to secondary markets, they still require a significant amount of effort on the part of the customer, who must prepare a detailed product listing for the product, including a description, staged photos, and the like. Moreover, existing electronic secondary markets are difficult to navigate by potential purchasers looking for a particular product, significantly diminishing the chances for a successful transaction. Furthermore, from the perspective of a product retailer, secondary markets can be extremely harmful to product branding, as the product retailer has no control over how products are presented (e.g., visually or descriptively) through these secondary markets.